The Eurasian Economic Union (EAEU or EEU)[note 2] is an economic union of states located primarily in northern Eurasia. A treaty aiming for the establishment of the EEU was signed on 29 May 2014 by the leaders of Belarus, Kazakhstan and Russia, and came into force on 1 January 2015.[12] Treaties aiming for Armenia's and Kyrgyzstan's accession to the Eurasian Economic Union were signed on 9 October 2014 and 23 December, respectively. Armenia's accession treaty came into force on 2 January 2015.[13] Kyrgyzstan's accession treaty will not come into force until it has been ratified,[14] but it participated in the EEU from the day of its establishment as an acceding state.[1][2][3][4][5]

In 1994, the President of Kazakhstan, Nursultan Nazarbayev, first suggested the idea of creating a regional trading bloc during a speech at Moscow State University. Numerous treaties were subsequently signed to establish the trading bloc gradually. Many politicians, philosophers and political scientists have since called for further integration towards a political, military and cultural union.[15][16] However, modern-day Kazakhstan has insisted the union stay purely economic as it seeks to keep its independence and sovereignty intact.[17][18][19]

During the 1990s, the Eurasian integration process was slow, possibly due to the economic crisis experienced after the dissolution of the Soviet Union and the size of the countries involved (Russia, Belarus and Kazakhstan cover an area of about 20 million km²). As a result, numerous treaties have been signed by member states to establish the regional trading bloc gradually.[journal 3][journal 2]

In 1995, Belarus, Kazakhstan, Russia, and later acceding states Kyrgyzstan and Tajikistan signed the first agreements on the establishment of a Customs Union. Its purpose was to gradually lead the way toward the creation of open borders without passport controls between member states.[29]

The union's member states account for about 15% of the world's land mass, covering over 20 million square kilometers.

In 1996, Belarus, Kazakhstan, Russia and Kyrgyzstan signed the Treaty on Increased Integration in the Economic and Humanitarian Fields to begin economic integration between countries to allow for the creation of common markets for goods, services, capitals, labour, and developing single transport, energy and information systems.[journal 2][30]

In 1999, Belarus, Kazakhstan, Russia, Kyrgyzstan and Tajikistan signed the Treaty on the Customs Union and the Single Economic Space by clarifying the goals and policies the states would undertake in order to form the Eurasian Customs Union and the Single Economic Space.[31][32]

To promote further economic convergence and more cooperation, in 2000 Belarus, Kazakhstan, Russia, Kyrgyzstan and Tajikistan established the Eurasian Economic Community (EurAsEC) which Uzbekistan joined in 2006. The treaty established a common market for its member states. The Eurasian Economic Community was modelled on the European Economic Community. The two had a comparable population size of 171 million and 169 million, respectively. 2003 saw the second Treaty on the Single Economic Space by Belarus, Kazakhstan, and Russia where the groundwork was laid to continue the integration process towards the creation of a broader, integrated single market. Efforts by these countries were also increased in 2006 to further the creation of the Eurasian Customs Union.[journal 2]

A session of the Supreme Eurasian Economic Council (composed of the union's heads of state) is held at least once every year.

The Customs Union of Belarus, Kazakhstan, and Russia (now the Eurasian Customs Union) came into existence on January 1, 2010.[33] The Customs Union's priorities were the elimination of intra-bloc tariffs, establishing a common external tariff policy and the elimination of non-tariff barriers. It was launched as a first step towards forming a broader single market inspired by the European Union, though not aiming at a political integration (thus, more similar to UNASUR, NAFTA or ASEAN), with the objective of forming an alliance between former Soviet states.[34] The member states planned to continue with economic integration and were set to remove all customs borders between each other after July 2011.

In 2011, the then-Prime Minister of Russia, Vladimir Putin, announced his support for Nursultan Nazarbayev's idea for the creation of a Eurasian Economic Union.[35][36] On 18 November 2011, the presidents of Belarus, Kazakhstan, and Russia signed an agreement setting a target of establishing the Eurasian Economic Union by 2015.[37] The member states put together a joint commission on fostering closer economic ties.[38][39]

On 1 January 2012, the three states established the Eurasian Economic Space which ensures the effective functioning of a single market for goods, services, capital and labour, and to establish coherent industrial, transport, energy and agricultural policies.[39][40] The agreement included a roadmap for future integration and established the Eurasian Economic Commission (modelled on the European Commission).[37][41] The Eurasian Economic Commission serves as the regulatory agency for the Eurasian Customs Union, the Single Economic Space and the Eurasian Economic Union.[39]

The signing ceremony of the Treaty on the Eurasian Economic Union (in Astana, Kazakhstan, on 29 May 2014)

On 29 May 2014, the presidents of Kazakhstan, Belarus and Russia signed the treaty on the Eurasian Economic Union, which came into effect on 1 January 2015. The presidents of Armenia and Kyrgyzstan were also present at the signing ceremony. Russian president Vladimir Putin stated, "Today we have created a powerful, attractive centre of economic development, a big regional market that unites more than 170 million people"."[42] Kazakh politicians emphasized the Eurasian Economic Union was not intended to be a political bloc, but a purely economic union.[42]Bakytzhan Sagintayev, the first deputy prime minister of Kazakhstan and lead negotiator, said, "We are not creating a political organisation; we are forming a purely economic union." He further stated "it is a pragmatic means to get benefits. We don't meddle into what Russia is doing politically, and they cannot tell us what foreign policy to pursue."[42] By October, the treaty had received parliamentary approval from all three states.[43] On 9 October 2014, a treaty to enlarge the EEU to Armenia was signed.[44][45] Kyrgyzstan signed a treaty on 23 December 2014 which will make it a full member of the Eurasian Union on 1 May 2015, provided it has been ratified.[14][46]

The decision of the Supreme Eurasian Economic Council on the entry of international agreements into force forming the legal base of the Customs Union and Single Economic SpaceBelarus, Kazakhstan, Russia

The Eurasian Economic Union is located at the eastern end of Europe, bounded by the Arctic in the north, the Pacific Ocean to the east and East Asia, the Middle East and part of Central Asia to the south. It lies between latitudes 39° and 82°N and longitudes 19°E and 169°W. The union extends across much of northern Eurasia. Its member states cover an area of over 20,000,000 square kilometers, which is approximately 15% of the world's land surface.[47]

The Eurasian Economic Union's highest peak is the Khan Tengri in the Tian Shan mountains, Kazakhstan, 7,010 m above sea level. The lowest point in the Eurasian Economic Union is the Karagiye Depression in Kazakhstan. Kazakhstan's Caspian shore includes some of the lowest elevations on Earth. According to a 2005 estimate by the United Nations, forests cover 40% of Belarus. 11,000 lakes and many water streams are found in the country.[54] Russia is known for its extensive mineral and energy resources, the largest reserves in the world, making it the world's largest producer of oil and natural gas.[55]

According to estimates, the Eurasian Economic Union's population of 176 million people is mostly urbanized, with Russia and Belarus having over 70% of their population living in urban areas. In Armenia over 64% of the population lives in urban areas. Kazakhstan's urban population comprises 54% of the country's total population.[56]

Armenia announced its decision to join the Eurasian Customs Union in September 2013. PresidentSerj Sargsyan announced the decision after talks with his Russian counterpart President Vladimir Putin in Moscow.[62] The treaty enlarging the EEU to Armenia was signed on 9 October 2014.[44] Armenia is the only country of the EEU that has no common border with the other member states of the union. Georgia guaranteed a free transit corridor for exporting its goods to the Eurasian Economic Union, Armenian deputy economy minister Emil Tarasyan said.[63]

Tajikistan was formally invited to join the union and has expressed its interest in acceding.[66][67][68][69] It is recognized as potential candidate and membership negotiations are underway.[68][69][70][71] The accession of neighbouring country, Kyrgyzstan, is currently ongoing. Russian Foreign Minister, Sergey Lavrov announced on August 11, 2014 that Russia would provide USD$500 million to speed up Kyrgyzstan's integration into the Eurasian Economic Union.[44][70][72]

It took Europe 40 years to move from the European Coal and Steel Community to the full European Union. The establishment of the Customs Union and the Common Economic Space is proceeding at a much faster pace because we could draw on the experience of the EU and other regional associations. We see their strengths and weaknesses. And this is our obvious advantage since it means we are in a position to avoid mistakes and unnecessary bureaucratic superstructures.

— Vladimir Putin, "A new integration project for Eurasia: The future in the making", Izvestia, 3 October 2011[73]

Uzbekistan remains hesitant to join the Economic Union, with Uzbek officials making opposing claims on the prospect of integration.[74][75] The country prefers not to pursue economic and political integration as of now.[76][77][78] Russian officials have stated that integration with the country would be slow and analysts state that as Russian influence and trade increases in Kyrgyzstan and Tajikistan it may persuade Uzbekistan to join in the future.[79][80][81] Uzbekistan began its integration process when Russia announced it would write off USD$865 million off debt owed by the country. Negotiations for a free trade agreement between the EEU and Uzbekistan are ongoing.[82][83]

Moldova, Ukraine and Georgia have been offered by both the European Union and the Eurasian Economic Union to join their integration unions. All three countries opted for the European Union by signing association agreements on March 21, 2014.[84] However, break-away regions of Moldova (Transnistria),[85] Ukraine (Donetsk and Lugansk)[86] and Georgia (South Ossetia and Abkhazia)[87] have expressed a desire to join the Eurasian Customs Union and integrate into the Eurasian Economic Union.

Ukraine submitted an application to participate in the Eurasian Economic Union as an observer in August 2013.[88]Viktor Yanukovych decision to abandon an association agreement with the European Union and exclusively pursue integration with the EEU was a key factor in the Euromaidan protests that ended his term as president of Ukraine and led to the Crimean Crisis. The countries membership in the EEU was seen by some analysts as the key to the success of the union as Ukraine has the second largest economy of any of the 15 former republics of the Soviet Union. With high tensions between Russia and Ukraine in the wake of the crisis, Ukraine decided to pursue integration with the EU.[89]

Georgia's Prime Minister Bidzina Ivanishvili said in September 2013 he was studying the possibility of acceding to the Union, although he later clarified that Georgia's main strategy was still to integrate into the European Union.[91][92] Russia's Prime Minister Dmitri Medvedev included Georgia as a prospective member in statements made in August 2013.[93]

The Eurasian Economic Union has sought to base its model on the European Union.

Important decisions for the Eurasian Economic Union are addressed by the Supreme Eurasian Economic Council, which is composed of the Heads of State of the Member States. The Supreme Council determines the strategy, direction and prospects of integration and takes decisions aimed at achieving the goals of the union.[95][96][97][98]

The Eurasian Economic Commission carries out its work in compliance with the Treaty on the Eurasian Economic Commission (EEC) and the international agreements that provide the legal and regulatory framework of the Customs Union and the Single Economic Space.

The agreement signed by Russia's prime minister Dmitry Medvedev, Kazakhstan's president Nursultan Nazarbayev and Belarus' president Alexander Lukashenko established the Eurasian Commission, the supranational governing body of the Eurasian Economic Space, which started work on 1 January 2012.[41] The Eurasian Commission was modelled on the European Commission.[37] Its headquarters are in Moscow.[journal 2] The commission monitors subordinate branches and advisory bodies. Its departments were greatly expanded on 1 January 2015, and the number of international employees increased from 150 to 1,200.

The Eurasian Commission can take decisions on not only the customs policy of the union, but also on the macro-economy, the competition regulations, the energy policy and the fiscal policy of the Eurasian Economic Union. It has strict anti-corruption laws.[99]

The Eurasian Economic Commission consists of two bodies: the Council and the Collegium.

The council is composed of the Vice Prime Ministers of the member states. The council of the Commission oversees the integration processes in the Union, and is responsible for the overall management of the Eurasian Commission. It monitors the commission by approving the draft budget of the union, the maximum number of personnel, and the qualification requirements for the commission's employees. The council convenes once every quarter.[95][96][97][98]

It also considers issues of customs cooperation, trade and development of Eurasian integration. The council regularly holds discussions on the important aspects of the EEU and meets with business representatives of the member states.[100]

The collegium is composed of twelve commissioners, one of which is the Chairman of the board.[journal 4] Each member state provides three commissioners to the Collegium of the Eurasian Commission who carry out the operational management and oversee the everyday work of the Eurasian Commission.[37] All twelve commissioners are appointed by the Supreme Eurasian Council for a four-year renewable term. The commissioners also receive the status of federal ministers in their respective countries.[41]

The Collegium of the Commission is the executive body of the Commission. It convenes once every week at least, and is responsible for the day-to-day running of the Eurasian Economic Union. It has a wide range of activities, including monitoring the implementation of treaties, submitting annual progress reports and making recommendations. The board of the commission also assists member states in the settlement of disputes, and carries out the draft of the union's budget. Part of its activities include being the intermediary between the departments of the commission and the heads of state of the member states.[95][96][97][98]

The mission of the Eurasian Development Bank is to facilitate the development of market economies, economic growth and the expansion of trade among the member states through investments. The bank's objectives also include financing projects that support Eurasian integration.

The Bank has provided financing totaling more than US $4,5 billion to investment projects in its member states.[102]

The Chairman of the Management Board is elected for four years and may be re-elected for only one additional term of office.[103]

The Eurasian Development Bank releases numerous journals, reports and studies which include the analysis of regional economic integration, namely market integration and economic convergence. The first aspect is evaluated on the basis of six indices that measure integration in the fields of trade, labour migration, electrical power engineering, agriculture, education and investments. The second aspect is evaluated on regional integration in the fields of macroeconomics, monetary policy, fiscal policy and financial policy. It then oversees and promotes projects to deepen integration in post-Soviet states.[journal 5] The Eurasian Integration Yearbook, a yearly publication, highlights and publishes papers on a wide spectrum of key regional integration issues.[104]

In 2012, the creation of a Eurasian parliament was under consideration.[105][106][107] However, it was considered too premature, and member states have instead considered creating an Interparliamentary Assembly for the Eurasian Economic Union[18] to succeed the Interparliamentary Assembly of the Eurasian Economic Community. Its role would be to facilitate interaction between the parliaments of the member states and work on harmonisation of national laws and legal codes of the member states.[108]

Russian president Vladimir Putin has upheld the idea of creating a parliament for the union.[109]

The Court of the Eurasian Economic Union replaced the Court of the Eurasian Economic Community (EurAsEC Court) in 2015. It is in charge of dispute resolution and the interpretation of the legal order within the Eurasian Economic Union. Its headquarters is in Minsk.[110] The court is composed of two judges from each member state, appointed by the heads of government of the member states. Their term of office is nine years.[95][96][97][98]

The approved budget of the Eurasian Economic Union for 2015 exceeds 6.6 billion Russian Rubles.[111][112][113] The budget is formed from contributions by the union's member states. In 2015, 6 billion Rubles will be allocated for the activity of the Eurasian Economic Commission, 463 million Rubles will be set aside for financing the operation and further development of the EEU integrated information system designed to promote and inform consumers of the EEU's activities, and over 290 millions Rubles will finance the activities of the Court of the EEU.[note 3][112] Extra expenses of infrastructure and accommodation of commission workers are financed by Russia.[41] In addition, Russia announced it would allocate USD$1 billion to accelerate Kyrgyzstan's entry into the union.[114][115] Another USD$ 177 million was provided by Kazakhstan.[116]

Further funds, financing and investments by the Eurasian Development Bank go towards projects that promote integration and trade in the EEU's member states (and states seeking to join).[101] In September 2014, The bank's total investments (including completed projects) amounted to USD $5.27 billion. The bank's current investments totalled US $3.63 billion. Its authorized capital was US $7 billion.[117]

The Treaty on Increased Integration in the Economic and Humanitarian Fields signed in 1996 laid the first foundation for economic convergence. The treaty ensured the creation of a permanent executive organ to oversee integration. It served as the blueprint for the future common market for goods, services, capital and labour.[journal 2][30] The Single Economic Space established a single market across the territory of Belarus, Russia and Kazakhstan. In 2015, the single market was expanded to include Armenia and Kyrgyzstan. The countries represent a market of some 181 million people and a combined GDP of around $4 trillion.

Russia has the 8th largest economy in the world by nominal GDP and the 6th largest by purchasing power parity. Since the turn of the century, member states have experienced economic growth with GDP averaging 6% to 8% growth between 2000 and 2007, rising again in 2010 after the Financial crisis of 2007–08. Since the establishment of the Eurasian Customs Union in 2010, trade between member states rose sharply. In 2011 mutual trade was USD 63.1 billion, 33.9% more than in 2010. In 2012, mutual trade was USD 67.9 billion and combined exports reached USD 593.7 billion, while imports were USD 340.9 billion.[journal 2] The first integration stage primarily enhanced trade among member states, bolstered economies and created a legal and institutional foundation for the member states. The second stage includes the free movements of goods, people, services and capital.

The Eurasian Economic Union is designed to reach a number of macroeconomic objectives such as reducing commodity prices by reducing the cost of transportation of raw materials, increasing return on new technologies and products due to the increased market volume, and promoting "healthy" competition in the common market. It is also designed to lower food prices, increase employment in industries and increase production capacity.

The Eurasian Union is considered as a major player in the world's energy sector, raw materials, arms industry and agricultural production. In 2013 Russia was the 3rd most successful country in the world in attracting capital from abroad.[118][119] The significant potential for developing infrastructure has led the member states and its partners to create links by constructing roads, railways, electric power grids and fibre-optic cables.

The core objective of the Single Economic Space is the development of a single market and achieving the "four freedoms", namely the free movements of goods, capital, services and people within the single market. The four freedoms came into effect on 1 January 2015 (the day the Eurasian Economic Union was officially established). The free movement of people means that citizens can move freely among member states to live, work, study or retire.[21] Citizens of the member states of the union may travel to other member states on an internal passport. Although Russia also admits access to citizens of other CIS states without a passport, it is expected that after 2015 only citizens of the Customs Union will have this privilege.[120] Member states have a common external tariff on all goods entering the market and unified methods of valuing imported goods since the creation of the Eurasian Customs Union on January 1, 2010. Objectives include joint coordination in the area of energy, industry, agriculture and transport.

Roughly 75% of Belarusian goods are exported, about half of which go to other member states.[121] Trade within the union primarily consists of Belarusian machinery and agricultural products which are exported to Russia. Low gas prices from Russian energy producers are guaranteed to member states or countries wishing to join the union.[122][123]

The Eurasian Economic Commission operates a competition policy to ensure equal competitive conditions in the commodity markets of the Single Economic Space. It also aims at harmonisation and improvement of legislation of each of the three countries in regard to competition policy. The commission serves as the competition regulator for the single market and is also responsible for antitrust issues. Special regulations limit state intervention in the economy.[journal 2][124]

Kazakhstani President Nursultan Nazarbayev had first proposed, in 2009, the creation of a common noncash currency called "yevraz" for the Eurasian Economic Community. It would have reportedly helped insulate the countries from the global economic crisis.[126] In 2012, the idea of the new joint currency found support from Vladimir Putin and Dmitry Medvedev and by 2014 proposals were drafted in Eurasian Commission documents for the establishment of a Eurasian Central Bank and a common currency to be called the altyn which is to be introduced by 2025.[127]

When discussing the Eurasian Economic Union, Vladimir Putin said the Eurasian Economic Union would include closer coordination of economic and monetary policy, including the use of a common currency in the future.[128] Although the creation of a monetary union was not envisaged in the Eurasian Economic Union Treaty, Russian Prime Minister Dmitry Medvedev called for the introduction of a common currency for the Eurasian Economic Union. Leonid Slutsky, head of the State Duma's CIS committee, backed Medvedev's proposal to start discussions on the creation of a monetary union. Slutsky said it could be introduced shortly after 2015, when the union's structure becomes clear.[129][130] Belarusian president, Alexander Lukashenko, circulated the idea of creating a "new euro" for the Eurasian economic bloc. In April 2014, discussions to introduce a single currency resumed.

Russia's First Deputy Prime Minister, Igor Shuvalov, stated on 24 July 2014 that the Eurasian Economic Union will have a common currency unit in a span of five to ten years.[23]

View of headquarters of Gazprom, Moscow, the world's largest extractor of gas

The Eurasian Economic Union is seen as an energy superpower, producing about 20.7% of the world's natural gas, and 14.6% of the world's oil and gas condensate in 2012, making it the world's top producer in both domains. It also produces 9% of the world's electrical energy and 5.9% of the world's coal, making it the third and fourth producer in the world, respectively. In Kazakhstan, energy is the leading economic sector. The country holds about 4 billion tons of proven recoverable oil reserves and 2,000 cubic kilometers (480 cu mi) of gas. Kazakhstan is the world's 17th largest oil exporter and the world's 23rd largest natural gas exporter.

By 2019, Russia, Kazakhstan, Belarus and Armenia intend to create a common electricity market as well as a single hydrocarbons market by 2025. "With the creation of a single hydrocarbons market, we will have a deeper coordination that will allow us to be more competitive both in terms of pricing and in terms of getting high value added products in this very interesting and important market", stated Eurasian Commissioner Daniyal Akhmetov.[136][137]

The major economic centres are Moscow, Minsk and Astana. The distance between Moscow and Minsk is 717 kilometers, and the distance between Moscow and Astana is 2700 kilometers, making infrastructure a key challenge for the integration of member states. Major infrastructure projects began during the 2000s in order to modernise and connect the regional bloc to other markets, facilitating both integration and trade in the region. In 2007 Moscow announced it will invest 1 trillion USD by 2020 to modernise the country's infrastructure.[138][139]

Kazakhstan ranks favorably in terms of miles of road per inhabitant as other developed countries in the world have much less roadway per inhabitant.[140][141]

Railways have been the primary way of linking countries in the Eurasian Economic Union since the 19th century. It has always been the main way of transport in the Russian Empire and the Soviet Union up until today. The union ranks 2nd in the world in terms of railway trackage (about 7.8% of the world's share). However it is still looking to improve cross-border trade within the union.

The Eurasian Development Bank has pledged to help in the construction of facilities to produce new generation freight cars and freight containers in Tikhvin, Russia and in Osipovichi, Belarus to respond to the increasing demand for rail transport. Projects have also been launched in Kazakhstan, as the landlocked country is highly dependent on railways for trade.

A major railway, known as the Eurasian Land Bridge allows goods to be transported from China and the EEU to Europe. An expansion of the original railway line named the New Eurasian Land Bridge provides an uninterrupted rail link between China and the EEU. Talks with China, India and Burma are ongoing to expand the railway network. In June 2014, it was announced that Russia, North Korea and South Korea would cooperate to expand the Eurasian Land Bridge to connect the peninsula. Advantages of exporting products by rail through the EEU are reduced shipping times and reduced costs. The railways also have the potential for expansion, with the future creation of high-speed railway lines being considered.[144]

The Single Eurasian Sky programme, administered by the Eurasian Economic Commission, outlines the creation of a single market for air services and a single air traffic zone. The single air traffic zone would make it easier for airlines to draw up new flight paths, thereby increasing the number of flights flying through the region. Eurasian Commissioner, Daniyal Akhmetov, said that it would be created on a step-by-step basis.[145] In June 2014, Belarusian Airline Belavia stated that it was ready to move towards the development of the Single Eurasian Sky. The terms and conditions of operation in the common aviation market have not yet to been agreed on. However, the project is likely to be modelled on the European Union's Single European Sky.[146] The project will reportedly help turn the airspace of the Eurasian Union into a popular transit hub between Europe and Southeast Asia. "We should understand that currently, the aviation companies of Kazakhstan and Belarus are not able to compete with Russia's aviation companies. Therefore, the programme will envisage a phasing, creating a competitive environment and so on", Eurasian Commissioner Akhmetov said.[147]

Part of the competences of the Eurasian Economic Commission are agriculture subsidies. It is responsible for the coordination of agricultural policy-making between member states and ensuring collective food security. The Eurasian Development Bank finances projects to further integration and develop agriculture. It has disbursed approximately US$470 million for projects between 2008 and 2013.

Member states remain optimistic of the union and key partners in the region, namely China, Iran, Turkey remain interested in it. A common belief is that the Eurasian Economic Union has significant potential over the next two decades, with experts predicting a 25 percent growth in the member states' GDP by 2030, which equates to over US$600 billion.[148] The agreement will give member state citizens access to employment and education across the union. It will also entail collaborative policies in many sectors, including agriculture, energy, technology and transportation.[22] These collaborative policies are particularly interesting for countries in Asia seeking access to energy, trade routes in Central Asia and Siberia, and agricultural goods.

Former president Dmitry Medvedev of Russia stated that both the positive and negative experiences of the European Union will be taken into account and argued that the Eurasian Union will avoid the problems of economic gaps and disparity between countries,[99] such as those found in the eurozone, since the member countries have a comparable level of economic development, as well as common history and values.[149]

The European Union and the United States as well as other western countries remain critical of the Eurasian Economic Union, with analysts stating that without modernisation and real economic reforms, the union will have little impact.[22] The popular magazine The Economist stated that the advantages of joining the union remain unclear[89] and further remarked "The agreement was vague, with technical details left unresolved, making it a political show rather than an economic one".[150] Outlets have also stated that without Ukraine, the Eurasian Economic Union has lost a key member state necessary to the success of the union. Bloomberg's business magazine, Businessweek has affirmed that joining Putin's Eurasian Union looks like a bad deal, including for Russia. The union "won't really register on the radar of the global economy," said an analyst at the EU's Institute for Security Studies in Paris.[151]

Vladimir Putin stated in November 2011 that the Eurasian Economic Union would build upon the "best values of the Soviet Union"; however, critics have claimed that the drive towards integration aims to restore the "Soviet Empire".[152]

In force since 2012, the multilateral CIS Free Trade Zone Agreement establishes a free trade area between the Eurasian Economic Union, Ukraine, Uzbekistan and Moldova.

Russia's economic development minister stated that the Turkish economic minister, Nihat Zeybekci, put forward an initiative for closer cooperation with the Eurasian Economic Union, including the formation of a free trade zone between the union and Turkey.[153]

Vietnamese PresidentTruong Tan Sang stated in July 2012 that Vietnam may join the Customs Union: "if there is a political will from our country's authorities, as well as Belarusian and Kazakh partners, we will soon be able to start this process".[154] The Customs Union completed a free trade agreement (FTA) feasibility study for Vietnam in November 2012[155] and Russian Prime MinisterDmitry Medvedev stated in November 2012 that negotiations over the FTA will begin in early 2013.[156] Vietnamese officials estimated in September 2012 that negotiations could take two years.[155] Trade between Vietnam and the Customs Union in 2011 was 2.24 billion USD.[157]

As announced by Russian Deputy Prime Minister Arkady Dvorkovich on 9 December 2013, Israel is considering signing a free trade agreement with the Eurasian Economic Union.[158]

In May 2015, the Union gave the initial go-ahead to signing a free trade agreement with Iran. Described as the EEU's "key partner in the Middle East” by Andrey Slepnev, the Russian representative on the Eurasian Economic Commission board in an expert-level EEU meeting in Yerevan,[161]Viktor Khristenko furthermore noted that Iran is an important partner for all the EEU member states. He stated that “Cooperation between the EEU and Iran is an important area of our work in strengthening the economic stability of the region”.[162]

The union is actively seeking to increase trade with East Asia. It commenced talks for official trade cooperation with ASEAN. Officials of both unions discussed opportunities for developing cooperation between them.[163] The South Korean president launched a "Eurasian Initiative", which seeks to connect transportation, electrical, gas and oil links from Western Europe to East Asia.[164][165] The initiative echoes China's long-standing "New Silk Road" project.[166] The members of the union agreed to step up talks with Vietnam on creating a free trade zone, to strengthen cooperation with China, including in information exchange on goods and services, and to set up expert groups to develop preferential trade regimes with Israel and India.[167]

As the trading bloc seeks to profit from the growing economies of East Asia, Russia has made steps to develop its eastern territories, Siberia and the Russian Far East.[journal 6] However, the development of the Russian Far East may face difficulties due to Russia's traditional orientation towards Europe and the region's backward infrastructure and underdeveloped economy.[journal 8] In 2012 Russian President Vladimir Putin called for Russia to "catch the Chinese wind in the sails of the Russian economy".[168] During the same year, a Ministry for the Development of the Russian Far East was established and the country hosted a summit of the Asia-Pacific Economic Cooperation forum (APEC) in its eastern city of Vladivostok. The country also began striking deals and undertook massive efforts to improve infrastructure in its eastern territories.[journal 8] Russia’s pivot to Asia included the important task of creating a Eurasian trading bloc. The countries seek to increase their competitiveness by sustaining domestic development and defending their interests in the region.[journal 9] An estimated 76% of Russia’s exports depend on resources extracted (or manufactured) in Siberia. In order to transport goods from East Asia to Europe, they must be transported through Siberia by rail. Hence, the region plays an important role in trade. However, it remains less developed than Russia’s western regions and modernisation plans are ongoing.

In 2013 the Russian government announced it would spend 450 billion Rubles (USD$14 billion) for the modernisation of the Trans-Siberian and Baikal-Amur railways. Russian President Vladimir Putin called the Trans-Siberian railway the country’s "strategically vital transport artery". In July 2013 he stated "Rail freight traffic to our Far East ports has increased by 55 percent over the last 5 years and now comes to around 110 million tons a year". Projects to upgrade stations at the border with Mongolia, China and North Korea were also undertaken the same year.[journal 10]

In 2013, Kazakhstan and China signed 22 deals worth $30 billion, including several deals enhancing the countries' cooperation in the oil and gas sector.

Some experts also see the union as a way to curtail the loss of Russian influence in Central Asia.[journal 7] Russian politicians have voiced their concerns over Russia’s long southern borders and the challenges it may pose. By creating a regional trading bloc to keep its neighbours in Central Asia stable, Russia hopes to find securing its own borders easier.[169]

Neighbouring Kazakhstan has replicated Russia’s attempt to access East Asian markets. In September 2013, the presidents of China and Kazakhstan signed commercial deals and launched China’s "New Silk Road". On 20 May 2014, both presidents announced they would link Kazakhstan’s railways to the Pacific Ocean by opening a new terminal in the Chinese port city of Lianyungang. China also signed agreements to make further investments in Kazakhstan’s energy sector. Both countries announced they would put aside US$1 billion to modernise an oil refinery in Shymkent and a further USD$150 million to open a new oil and gas plant near Almaty. The president of Kazakhstan also held talks with the heads of Chinese corporations and agreed to cooperate in the areas of aircraft production, telecommunication and mining.[journal 11]

The Eurasian Economic Union has 17 cities with more than 1 million inhabitants, the largest being Moscow. The most densely populated areas are the capital cities of member states and European Russia. Siberia is the region with the least inhabitants. In Russia about 160 different ethnic groups and indigenous peoples live within the country's borders.[174]Kazakhstan and Belarus are home to sizable ethnic Russian minorities. Though the member states of the Eurasian Economic Union's populations are comparatively large, its density is low because of the enormous size of Russia and Kazakhstan. The Eurasian Economic Union's average birth rate in 2010 was roughly 12.5 births per 1000 people, higher than the European Union, which has an average of 9.90 births per 1000 people.

Countries and regions where the Russian language is an official language or widely spoken.

Numerous minority languages are spoken widely across the union. However, official languages spoken are Armenian, Belarusian, Kazakh and Russian. Russian is widely spoken in all member states, with the majority of them being bilingual in their native language as well as in Russian, as the Russian language is still taught in most public schools of the union's member states.[175] In Belarus, Russian is the main language used by 70% of the population, while Belarusian is used by 12% of the population.[176]

The Eurasian Economic Union must negotiate as a whole to sign free trade agreements with other countries. Key players for the Eurasian Economic Union are the European Union, Turkey, Iran, China and the Korean peninsula. The EEU has sought to increase its trade with partners in the Middle East and East Asia in order to profit from the growing trade between Europe and Asia.

Tensions with the European Union in 2014 have increased both unions to pressure post-Soviet states to join their integration unions. Both sides have accused each other of carving spheres of influence.[183][184] Members of the union, especially Russia have tried to diversify their trade by signing economic agreements with China,[185] Iran[186] and Turkey.[187] Trade with North and South Korea has also risen.[188][189][190][191]

A rising China has been increasingly interested in Central Asia and the Eurasian Economic Union.[192] Analysts see the union as a potential way China could facilitate its investments in the region.[193] Historically, China held close economic ties with many countries throughout Eurasia. Under the Han Dynasty, its trade routes extended to the Roman Empire. The Economy of the Han Dynasty and other subsequent dynasties exchanged numerous goods with countries throughout Europe and Asia. Both China and the union have stated they would benefit from recreating trade routes modelled on the historic Silk Road.[194]

Railways transport goods from China to the European Union through Kazakhstan and Russia. The country has pushed for the construction of more railway lines to connect Berlin to east China to reduce shipping time. It proposed major high-speed railway lines going towards Europe via Russia and Kazakhstan and another through the Middle East via Tajikistan, a potential future member for the union.[195][196] China has signed numerous energy deals with Russia and Kazakhstan, as it tries to move from coal to less pollutant alternatives.[197][198]

Iran has sought to diversify its economy as well, seeing the EEU and China as key economic partners. Relations between Russia and Iran have increased as both countries are under U.S. sanctions and are seeking new trade partners. The two countries signed a historic US$20 billion energy deal.[199][200]

Kazakhstan seeks to enhance its ties with Turkey, a key player in the region. In July 2014, Turkey announced closer economic ties with the EEU, including a possible free trade agreement in the near future.[201]

In September 2013 Armenia announced its intentions of joining the Customs Union of Belarus, Kazakhstan and Russia.[202] The region of Nagorno-Karabakh, however, is disputed between Armenia and Azerbaijan. Tensions rose further in the Caucasus region on 30 July 2014 due to clashes between Armenian and Azerbaijani soldiers.[203]

Experts estimate that with the accession of Armenia, the internationally unrecognised Nagorno-Karabakh Republic would not be integrated into the Eurasian Union.[202] Armenia is a permanent political, military and economic ally of Russia, whereas Azerbaijan holds close ties with the west. The Kazakh President Nursultan Nazarbayev expressed concern in 2013 that no reliable customs border between Armenia and Nagorno-Karabakh could be drawn. However, Nazarbayev expressed that he holds all the existing disagreements preventing Armenia's integration into Eurasian Economic Union are surmountable.[204] The Chairman of the Foreign Policy Committee in the Armenian Parliament, Artak Zakarian, announced on 14 May 2014 that Armenia will build no customs border including the region of Nagorno-Karabakh.[205]

When Russia's Gazprom bought the gas network of Kyrgyzstan in April 2014 pledging "a stable gas supply", Uzbekistan subsequently cut off its gas exports to Kyrgyzstan's south stating that it had no contracts to sell gas to Gazprom. The cut off happened as Uzbek president, Islam Karimov protested Russia's growing presence in the region.[206] The shut-off left hundreds of thousands in south Kyrgyzstan without gas. The president of Kyrgyzstan has since promised to build a new gas pipeline to the country's south, bypassing Uzbekistan. He also announced the country would pursue integration and continue on its path to join the Eurasian Economic Union.[207] Gazprom later announced it had struck a deal to restore gas supplies to southern Kyrgyzstan.[208]

Previously, Tajikistan was on track to become a potential member of the union, having signed the treaty on the Eurasian Customs Union and the Single Economic Space. However, due to border disputes between Kyrgyzstan and Tajikistan, the integration process in Tajikistan has stalled.[68][69][209] Both countries exchanged fire in December 2013 and August 2014, which resulted in casualties.[209][210][211] Both countries have since announced they would resolve conflicts and improve border cooperation. Officials hope to make significant progress by the end of 2015.[212][213]

The emphasis of the Eurasian Union is on economic integration, but this extends into the political and even security realms. For instance, the use of a single currency and a bureaucracy to manage the economic space would by design translate into Russian domination.

Former European commissioner, José Manuel Barroso stated at the World Economic Forum that the EU supports the regional integration, including the Eurasian Union. He also praised Kazakhstan for joining the bloc. He criticized the post-Soviet space, saying "the integration in the region is not sufficient". However, he warned that the Ukrainian crisis is a major obstacle to good cooperation between the EU and the Eurasian union.[215][216]

Tensions between the EEU and the European Union (EU) occurred as both have sought to deepen their ties with several former Soviet republics. The EU has signed free trade agreements with Ukraine, Moldova and Georgia. However, separatists in all three countries back closer ties with Russia. Russia and the EU both pressured Ukraine to join their respective economic blocs to the exclusion of the other, which ultimately led to Ukraine being torn in two,[217] with the EU supporting the unwilling departure of the elected president,[218] and Russia then annexing the Crimean peninsula (following a referendum) and supporting separatists in Eastern Ukraine.[219][220] In response, some member states of the European Union have sought to find alternatives to Russian gas, while others have voiced their support for the construction of the South Stream pipeline which circumvents Ukraine. Analysts believe Russia backs the Eurasian Economic Union in order to limit western influence in the region.[206]

Western analysts generally see the Eurasian Economic Union as a way to reunite many of the former Soviet republics. For example, Washington Post author Abigail Hauslohner wrote the treaty was intended "to further bolster [Russia]'s ties to former Soviet republics."[22] The United States expressed its opposition to the Eurasian Union, claiming it is "an attempt" to re-establish a USSR-type union among the former Soviet republics.[221] In December 2012, former Secretary of StateHillary Clinton claimed "It's not going to be called that [Soviet Union]. It's going to be called customs union, it will be called the Eurasian Union and all of that, but let's make no mistake about it. We know what the goal is and we are trying to figure out effective ways to slow down or prevent it".[221]

Kazakhstan's president Nursultan Nazarbayev called it "a hard-won achievement" and "a blessing for our people."[22] Public support in Kazakhstan for the country's accession to the EEU stood at 68% in June 2014, with 5.5% opposed.[222]

Euler diagram showing the relationships between various multinational organisations in the territory of the former Soviet Unionv • d • e

The Eurasian Customs Union has already brought partial economic integration between the three states, and the Eurasian Economic Union is said to be a continuation of this customs union. However, the impact of that agreement is unclear – trade between the three states actually fell 13% during the agreement's first year.[89]

^ abKyrgyzstan has signed a treaty of accession. It has obtained the status of 'acceding country' and is expected to become a full member state. During the interim period, acceding countries benefit from special arrangements: they participate in all important summits and discussions, are kept informed of legislation via a consultation procedure, and are given the opportunity to comment on proposals. They also hold an active observer status in all the union's bodies.

^Both acronyms are used as per the organisation’s website. However, many media outlets use the acronym EEU. Sometimes it is even referred as the EAU (the Eurasian Union) for simplification purposes.

^These numbers only reflect the official budget (direct money) allocated for the functioning of the union. Vast amounts of additional funds come from national governments and other institutions to ease, promote or facilitate Eurasian integration.

^Steven Blockmans; Hrant Kostanyan; Ievgen Vorobiov (December 2012). "Towards a Eurasian Economic Union: The challenge of integration and unity"(PDF)75 (CEPS Special Report). CEPS. pp. 4–5. Given the distances between major economic centres, the transportation costs appear to be much higher in the case of trade within the CU than within the EEC. Besides, there is significant asymmetry in the distance between Russia’s and Belarus’ economic centres and those of Russia and Kazakhstan, which affects intra-bloc trade flows. This factor might significantly impede the envisaged positive effects of removing tariff barriers to trade and increasing labour mobility, and will therefore require greater efforts to ease cross-border trade, such as improving transport infrastructure.

^ abAlexander Gabuev (May 2014). Liik, Kadri, ed. "Russia's Pivot to Asia: The development of the Russian Far East"(PDF). 35 Old Queen Street, London, SW1H 9JA, United Kingdom: European Council on Foreign Relations. p. 84. ISBN978-1-910118-03-0. Retrieved 4 September 2014. This Asian vector of Russian domestic and foreign policy is now becoming even more important as the European Union and the United States impose sanctions on Russia. The Russian Far East, with its proximity to Asia, could become the new backbone of the Russian economy

^ abYesdauletova, Ardak; Yesdauletov, Aitmukhanbet (1 March 2014). "THE EURASIAN UNION: DYNAMICS AND DIFFICULTIES OF THE POST-SOVIET INTEGRATION"(pdf). TRAMES (Estonian Academy Publishers) (1): 12–13. Retrieved 4 September 2014. The Single Economic Space, which in the near future will be transformed into the Eurasian Union, has strategic aims as well as economic ones. Marlene Laruelle and Sebastien Peyrouse, both share this opinion about the diminution of Russia’s influence on Central Asian countries. However, the Kremlin continues to conduct an active policy aimed at maintaining effective tools to influence the Central Asia region.

^ abTimofei Bordachev (May 2014). Liik, Kadri, ed. "Russia's Pivot to Asia: Eurasian Russia in the twenty-first century"(PDF). 35 Old Queen Street, London, SW1H 9JA, United Kingdom: European Council on Foreign Relations. p. 27. ISBN978-1-910118-03-0. Retrieved 4 September 2014. In the first months of 2014 the work of the recently created Ministry for the Development of the Far East was significantly reinvigorated. Some governmental agencies were relocated from Moscow to Vladivostok and some major companies have been advised to follow with their main offices. But Russia’s "pivot" is still held back by its backward infrastructure, its corruption, its underdeveloped economy, its demographic problems, and above all its archaic Eurocentric economic thinking.

^Alexander Gabuev (May 2014). Liik, Kadri, ed. "Russia's Pivot to Asia: The development of the Russian Far East"(PDF). 35 Old Queen Street, London, SW1H 9JA, United Kingdom: European Council on Foreign Relations. p. 80. ISBN978-1-910118-03-0. Retrieved 4 September 2014. The Asia-Pacific Economic Cooperation (APEC) summit held in Vladivostok in September 2012 cost the state 680 billion roubles (over $22 billion) – one-third of which came from the federal budget, with the rest put up by state companies such as Gazprom. In 2012 the Ministry for the Development of the Russian Far East was created and in 2013 long-time Putin ally Yury Trutnev was appointed to oversee the development of the region in the joint role of deputy prime minister and presidential envoy to the region. In 2013 the government also allocated 300 billion roubles ($10 billion)[...]

^Ernesto, Gallo (4 June 2014). "Kazakhstan’s "Pivot to China"?"(PDF). Policy Brief (The Institute for Security and Development Policy) (154). Retrieved 4 September 2014.

^ ab"Putin said the accession of Kyrgyzstan to the EAEC" (in Russian). Life News. 23 December 2014. Retrieved 26 December 2014. Kyrgyzstan is among the member countries of the Eurasian Economic Union (EAEC). Kyrgyzstan will participate in the governing bodies of the EAEC since the start of the Union - from 1 January 2015.

^ abFarchy, Jack (23 December 2014). "Eurasian unity under strain even as bloc expands". The Financial Times. Retrieved 26 December 2014. Kyrgyzstan on Tuesday a signed a treaty to join the Eurasian Economic Union, expanding the membership of Moscow-led project to five even as its unity is strained by the market turmoil gripping Russia.

^"Kyrgyz government approved the roadmap for accession to the CES". Kazakhstan Pravda. October 9, 2014. Retrieved December 7, 2014. As reported the department of information support of the government apparatus of the country, on the eve Prime Minister Joomart Otorbaev held a meeting of the government, which discussed the action plan (roadmap) for accession of Kyrgyzstan to CES of Belarus, Kazakhstan and Russia in view of the formation of the Eurasian Economic Union, informed BELTA.

^"Central Asia states press ahead with moves to join Customs Union". http://www.bne.eu/ (Business New Europe). 13 November 2014. Retrieved 31 August 2014. Delay is likely the result of ongoing tension. Uzbekistan has for many years resisted full participation in economic and military regional alliances, in particular those dominated by Russia. It quit the Collective Security Treaty Organisation, a military grouping of post-Soviet countries, in 2012.

^"EDB Eurasian Integration Yearbook". eabr,org. Eurasian Development Bank. Retrieved 26 November 2014. EDB Eurasian Integration Yearbook publishes papers and other materials on a wide spectrum of regional integration issues. The core of the Yearbooks consists of the English versions of papers that were published in various Bank publications throughout the year. They are complemented by a regional integration chronicle for the year. With this yearbook, we intend to make available high-quality publications in the Russian language to a global audience.

^Vladimir, Putin (27 February 2012). "Russia and the changing world". RIA Novosti. Retrieved 4 September 2014. First of all, I am convinced that China's economic growth is by no means a threat, but a challenge that carries colossal potential for business cooperation - a chance to catch the Chinese wind in the sails of our economy. We should seek to more actively form new cooperative ties, combining the technological and productive capabilities of our two countries and tapping China's potential - judiciously, of course - in order to develop the economy of Siberia and the Russian Far East.

^"Tres de cada cuatro bielorrusos emplean en su vida cotidiana el ruso (Three of every four Belarusians use Russian in their daily lives)" (in Spanish). Retrieved 25 October 2009. According to results announced today from an investigation by The Center for Information and Analysis of the Presidency of Belarus ... [f]or 72% of the population, Russian in the primary language used in everyday life ... According to the study, only 11.9% of inhabitants primarily speaks Belarusian, while the rest uses a mix of Russian and Belarusian. 29.4% ... speaks, reads, and writes in Belarusian, while 52.5% only speaks and reads it ... [O]ne in ten does not understand Belarusian [at all]. (quote translated)